Which of the following would lead to a variance resulting from a permanent change in a firm's operating environment?
A)An abnormally high incidence of employees calling in sick during a period.
B)A new competitor entering the market.
C)Upper-level management failing to consult lower level workers and instituting extremely tight budgetary controls.
D)A critical machine unexpectedly breaking down for a number of days.

Question

Quizplus · Accepted Answer

A new competitor entering the market would cause a permanent change in the firm's operating environment, as it would impact the demand for the firm's products or services and potentially shift the competitive landscape. The other options may lead to temporary fluctuations in performance, but they do not represent lasting changes to the operating environment.

Which of the Following Would Lead to a Variance Resulting